Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China's EV sales rise for second month as overall market continues recovery

Published 09/10/2020, 02:39 AM
Updated 09/10/2020, 04:00 AM
© Reuters. Newly manufactured cars are seen at a port in Dalian

© Reuters. Newly manufactured cars are seen at a port in Dalian

By Yilei Sun and Brenda Goh

BEIJING (Reuters) - New energy vehicle (NEV) sales in China surged 26% on year to 109,000 units in August for their second consecutive month of gain, a promising sign for automakers that have invested heavily in the world's biggest market for electric vehicles (EVs).

For the full year, NEV sales are likely to reach 1.1 million vehicles, down around 11% from last year, said the China Association of Automobile Manufacturers (CAAM) on Thursday.

NEVs include battery-powered electric, plug-in gasoline-electric hybrid and hydrogen fuel-cell vehicles.

"The sales rebound was fuelled by rural NEV sales promotion events and local governments' support," said senior CAAM official Chen Shihua.

EV makers from home-grown Nio Inc (N:NIO) and Xpeng Inc (N:XPEV) to U.S. leader Tesla Inc (O:TSLA) are expanding manufacturing capacity in China where the government heavily promotes greener vehicles as a means of reducing chronic air pollution.

"There was a new-car effect in August, as a new mini EV model from GM's local venture and Tesla's Model 3 both sold well," said senior LMC Automotive analyst Alan Kang. "Sales at EV startups like Nio and Xpeng were stable too."

NEV sales in coming months will be around same as in August, Kang said.

China's overall auto sales in August rose 11.6% to 2.19 million vehicles from the same month a year earlier, the fifth consecutive month of gain as China comes off lows hit during the coronavirus lockdown in the first few months of the year.

Sales are still down 9.7% for the first eight months of the year at 14.55 million vehicles, CAAM said.

Sales of trucks and other commercial vehicles, which constitute around a quarter of the market, surged 41.6%, driven by government investment in infrastructure and as buyers upgraded to comply with tougher emissions rules.

Sales of passenger vehicles rose 6%.

© Reuters. Newly manufactured cars are seen at a port in Dalian

Automakers that reported sales growth in August include Geely Automobile Holdings Ltd (HK:0175) and Toyota Motor Corp (T:7203). The main local joint ventures of Nissan (OTC:NSANY) Motor Co Ltd (T:7201) and General Motors Co (N:GM), however, saw sales slide last month.

Latest comments

watch out for Tesla , another 10%up for sure
Tesla is loosing market in china pretty fast as these readings shows. In EU they are not even in top 3 now. They hold first only in US since there is lack of good EV manufacturers.
not true. :)
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.